Do rude staff boost luxury retail sales? Yes, according to new study

Date:

Share post:


Photo credit: BBC's 'Are You Being Served' via WikipediaPhoto credit: BBC's 'Are You Being Served' via Wikipedia

Photo credit: BBC’s ‘Are You Being Served’ via Wikipedia

A new study finds that when it comes to luxury brands, rude sales staff are better for selling. This conclusion was drawn from research done by the University of British Columbia’s Sauder School of Business, at a time when Canada’s luxury retail market is growing substantially.


Photo credit: China.comPhoto credit: China.com

Photo credit: China.com

The study titled “Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers’ Desire for the Brand“, will appear in the October 2014 edition of the Journal of Consumer Research. 

In the study, participants imagined or had real interactions with sales representatives in luxury environments. Some representatives were rude, while some were not. Participants rated their feelings about associated brands and their desire to own them. Interestingly, participants who expressed an aspiration to be associated with high-end brands also reported an increased desire to own the luxury products after being treated poorly.

It should be noted that this effect only held true if the salesperson appeared to be an ‘authentic representative’ of the brand. If they did not fit that description, the consumer was turned off. Further, researchers found that sales staff rudeness did not heighten impressions of mass-market brands.

“It appears that snobbiness might actually be a qualification worth considering for luxury brands like Louis Vuitton or Gucci,” says Sauder Marketing professor Darren Dahl. “Our research indicates they can end up having a similar effect to an ‘in-group’ in high school that others aspire to join. Our study shows you’ve got to be the right kind of snob in the right kind of store for the effect to work,” says Dahl.


Photo credit: Bergdorf GoodmanPhoto credit: Bergdorf Goodman

Photo credit: Bergdorf Goodman

The forthcoming Journal of Consumer Research study reveals that consumers who get the brush-off at a high-end retailer can become more willing to purchase and wear its expensive luxury goods.

Research showed, however, that the improved impressions gained by the rude treatment faded over time. Customers who expressed an increased desire to purchase the products reported significantly diminished desires two weeks later.

Based on the study’s findings, Dahl suggests that, if salespersons are acting rudely, it’s best for the consumer to leave the situation and return later, or avoid the interactions altogether by shopping online.

The study is timely, as Canada sees an unprecedented increase in the availability of luxury brands. Saks Fifth Avenue and Nordstrom are opening Canadian stores, while Holt Renfrew and Harry Rosen spruce up to remain competitive. Several of the world’s top luxury brands have also opened or intend to open Canadian stores, with more on the way. We’re unlikely to see sales staff be intentionally rude at Saks, Nordstrom, Holt Renfrew and Harry Rosen, given that these stores are multi-brand environments with reputations based on exceptional customer service. Smaller mono-brand luxury boutiques, on the other hand, could use the study’s findings to their advantage. 

The study was co-authored by Assistant Professor Morgan Ward of the Cox School of Business at Southern Methodist University in Dallas, Texas.

Source: UBC News

NEXT ARTICLE: Ontario Tobacco Tax Increase Will Fund Organized Crime?

PREVIOUS ARTICLE: Large Outlet Mall Coming To Winnipeg

GO BACK

Subscribe to RETAIL INSIDER

* indicates required




2 COMMENTS

  1. Sorry I don’t agree with this report, If your rude towards me with wanting to spend $160 for a shirt or $400 for some dress shoes. I’m leaving the store and contacting the company about the awful service and making it public.

    • We tend to agree with you, Kyle. Human nature is interesting, however. Some people make decisions and react to situations for incomprehensible reasons, much to the chagrin of some marketers. We agree with you on this however – we would never tolerate rude or snobby behaviour from retail staff, and encourage everyone to be the same. Canadian consumers deserve better.

Comments are closed.

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Imaginaire and WINNERS Join Splitsville in CF Sherway Gardens Nordstrom Redevelopment

Cadillac Fairview has announced Imaginaire and WINNERS for the former Nordstrom at CF Sherway Gardens in Toronto. Together with Splitsville Bowl, the three tenants will occupy approximately 100,000 square feet of the former department store, with openings targeted for fall 2027.

RioCan raises 2026 earnings outlook as retail occupancy reaches record 98.9%

RioCan reports 5.1% growth in third-quarter Core FFO per unit, record retail occupancy and higher leasing rents as it updates its 2026 financial outlook.

First Capital REIT reports higher third-quarter earnings as rental rates rise

First Capital REIT reported 9.2 per cent growth in operating FFO per unit in the third quarter, supported by higher rental income and lease renewals, while portfolio occupancy edged lower.

Happy Belly signs agreement for 150 Heal Wellness locations in Texas

Happy Belly Food Group has signed a binding agreement to develop 150 Heal Wellness restaurants across Texas, expanding its U.S. franchise pipeline.

Cadillac Fairview outlines 2026 holiday programming across Canadian shopping centres

Cadillac Fairview is introducing interactive holiday displays, Santa experiences, seasonal events and extended shopping hours at its Canadian retail centres for 2026.

Walmart Brings Sparky AI Shopping Assistant to Canada

Walmart has launched its Sparky AI shopping assistant in Canada, bringing conversational product discovery and shopping-list tools to Walmart.ca and its mobile app. The rollout follows U.S. findings of higher average order values among Sparky users as Canadian retailers expand their AI commerce strategies.

Retail Insider “Q3 2026 Convenience Report”: Food Growth Must Improve Store Economics

Convenience retailers are investing in prepared food, exclusive products and repeat-visit rewards. The Q3 report asks whether those gains can improve merchandise sales and margins across the store.

Primaris Lines Up New Retailers for Former Toys “R” Us Stores Across Canada

Primaris REIT has negotiated replacement tenant deals for six former Toys R Us stores spanning approximately 145,000 square feet. Higher rents are anticipated, with tenants expected to take possession during 2027. The article also examines Old Navy at Dufferin Mall and Jumbo at Vaughan Mills.

Hockey Card World Sales Jump 50% After Joining Temu Marketplace

Ontario-based Hockey Card World reports a 50% sales increase since joining Temu, with the online marketplace now accounting for about half of its sales.

Urban Barn opens first New Brunswick store in Moncton, expanding Canadian retail network

Urban Barn has opened a 6,200-square-foot store at Moncton's Mapleton Centre, creating 11 local jobs and bringing its Canadian store count to 55.

Canadians spend nearly 80 hours a year searching for something to watch: Roku

A Roku study finds Canadians spend an average of 13 minutes searching for streaming content, highlighting opportunities for advertisers as viewers navigate multiple platforms.

AI Shopping Agents Raise New Security Risks for Retailers Ahead of Holiday Season: Thales

As AI shopping agents reshape retail and e-commerce, Thales warns of growing data security risks, privacy concerns and accountability gaps facing retailers ahead of the holiday shopping season.

Buy Canadian Movement Creates New Opportunities for Advertisers: Vistar Media

The Buy Canadian movement is reshaping consumer expectations and advertising strategies. Vistar Media's Scott Mitchell explains how brands can use local relevance and out-of-home advertising to connect with Canadians

From The Desk: Retail real estate shifts, selective expansion and operational discipline

Canadian retail is shifting as landlords redevelop spaces, retailers focus expansion, and operations integrate technology amid cost and labour pressures.

Daily Synopsis: October 30, 2026

Galen Weston fears food inflation coming back, Metro expands with store investments in Quebec, family run Indonesian grocery store opening in Vancouver, and other news.

Retail Insider “Q3 2026 Discount & Off-Price Report”: More Transactions Put Value Models to the Test

Dollarama and TJX Canada generated more purchases as value competition expanded. Retail Insider’s Q3 report examines the different retail models behind that demand and the margins needed to sustain it.

Halifax’s Iconic Mezza Lebanese Kitchen Expanding into Ontario

Mezza Lebanese Kitchen is coming to Ontario and bringing the tradition that has made them Halifax’s most beloved and #1 voted Middle Eastern Restaurant for over 35 years.

Hyatt plans 10 Canadian hotel openings in 2027 as portfolio expansion continues

Hyatt says its Canadian hotel portfolio has quadrupled since 2017, with more than 40 development deals in its pipeline and new brands preparing to enter the market.

Canadian employers respond to economic pressures with hiring freezes, layoffs and increased automation: Littler

A Littler survey of 200 Canadian business leaders finds economic uncertainty, U.S. tariffs, regulatory changes and artificial intelligence are reshaping workforce decisions and workplace policies.

Primaris REIT Advances Hudson’s Bay Leasing as Mall Redevelopment Program Moves Forward

Primaris REIT has increased long-term leasing commitments for former Hudson's Bay stores to 728,000 square feet. Its Q3 2026 results outline projected rental income, redevelopment spending, and the company's acquisition and disposition strategy across Canadian shopping centres.